I too am convinced pc gaming isn't anywhere close from dying, and everyone here gave excellent arguments why. What I am concerned about though is the impact of console gaming on PC games. I feel quality is going down to conform to console, the focus is put on graphics and of course there's a specific way to how games are played on consoles. There's more than just graphics to great games, Planescape: Torment and Fallout 1&2 are among my favorite games yet their graphics were nothing to awe at.
Market sales just dictate what publishers fund developpers to create, and right now that's console friendly games or WoW clone attempts.
Perhaps my expectations and conception of a quality game are that of a minority of people and as such we have no weight. But buying a game is like voting, voting for the developers we want to see continuing making games and not buying a game is sending a message the developer is too crap and shouldn't be allowed to continue. Yet I bought almost every game from Black Isle (except Fallout Tactics, Brotherhood of Steel, BG Dark Alliance and all that console crap) and that didn't help avoiding the end of the studio… So I'm not even sure it changes anything. I guess I'll have to accept the fact most games from now on are developped for several platforms, which means adding up all the limitations from each platform.
On the other hand, it's because they're planning on selling for different platforms that they have the money to fund the project to begin with. So I can't really blame consoles either.